Roo-Fus Inc is considering financing its international expansions by borrowing in the international debt markets. The current annualized 30day LIBOR rate is 4.5%. Roo-Fus Inc expects that the next period's 30-day LIBOR is 9.5%. Roo-Fus Inc's credit rating implies that it will face a 1.4% premium over LIBOR. What are Roo-Fus Inc's (annualized) borrowing costs?

Select one:

a. This period: 5.9%. Next period: 10.9%

b. This period: 5.9%. Next period: 5.9%

c. This period: 10.9%. Next period: 10.9%

d. This period: 4.5%. Next period: 9.5%

e. This period: 4.5%. Next period: 4.5%